2018 Security Predictions: Corporate Cyber Insurance – The Increased Adoption of Corporate Cyber Insurance Will Fuel Ransomware Growth

Could having Cyber Insurance actually increase your chances of being the victim of a cybercrime?  It might, and here’s why.  As part of their 2018 Security Predictions series, WatchGuard Technologies has produced the below video to describe why this might be the case.  They predict that cyber insurance providers will be prime targets for cybercriminals as the criminals try to identify who the insurer’s clients are so that these consumers of cyber insurance can, in turn, become their focus for attack.  The logic being that the payoff rate for those having insurance will be greater than the average which, surprisingly, runs at about one-third of victims that pay ransoms.

While it is true that insurance providers will undoubtedly require stringent minimum standards for cyber protection, savvy organizations realize that their greatest vulnerability may very well be the hit their reputation will take should they be exposed as a victim of cybercrime.  This will continue to motivate victims to pay ransoms.

Cyber insurance is a great way to transfer some of the risk associated with today’s online digital world but only part of the risk is transferable.   Security professionals must have a solid plan for addressing how to deal with the remaining risk, which may actually be increased because of their insurance protection.